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TRANSCRIPT
District Opportunity to
Purchase Act (DOPA)Pre-Bid DOPA Meeting for
Potential Developer-AssigneesDecember 10th, 2018
Agenda
• Welcome
• Director’s Remarks
• Overview of DOPA
– Regulations
– Request for Qualifications
– Request for Proposals
– Assignment of Rights
– Compliance
• Questions and Answers
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Members of the Ben E Cooperative
Association recently thanked DHCD for its
help in preserving their housing using
TOPA.
Background on DOPA
• The District Opportunity to Purchase Act (DOPA) was enacted
in 2008.
• Regulations were never issued to allow the law to take full
effect.
• In November 2016, the DC Housing Preservation Strike Force
listed the implementation of DOPA regulations as one of six
strategies the District should use to preserve its affordable
housing stock.
• Mayor Bowser directed DHCD to develop the regulations,
which are the result of a thorough rulemaking process that
began in December 2017.
• The final rules were published in the DC Register on November
16, 2018 and went into effect the same day.
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Drafting Process for DOPA Regulations
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• Established the coordination of the DOPA and TOPA timelines.
• Explained the District Management of properties it purchases.
Proposed Rules issued on December 22, 2017
• Clarified the types of information the Mayor may request from an owner.
• Provided more specifics on the criteria for developer assignees.
• Clarified how rent and income are determined and the income levels used for eligibility purposes.
• More explicitly defined maximum rent.
Second Set of Proposed Rules
June 15, 2018
• Clarified the affordable rental unit definition.
• Revised the definition of monthly rent.
• Updated the definition of allowable annual increase.
Final Regulations
November 16, 2018
Goal of the DOPA Program
DOPA promotes affordable rental housing by maintaining existing
affordable rental units as well as increasing the total number of
affordable rental units within the District.
Properties are considered eligible for DOPA when:
• A property of five or more rental units is offered for sale; and
• 25 percent or more of the rental units are “affordable” at 50% of
Median Family Income (MFI).
DOPA allows the Mayor the opportunity to purchase or assign the
right to purchase the property IF the tenants do not exercise their
TOPA rights.
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TOPA NOTICE
Offer Period
(30-45 days)
Negotiation Period
(Up to 120 days)
Settlement Period
(120 days)
DOPA NOTICE
Offer Period
(30 days)
Negotiation Period
(Up to 45 days)
Settlement Period
(60 days)
TOPA & DOPA Timelines
(Intended to Run Concurrently)
*The Negotiation Period for DOPA does not occur
if TOPA is executed in the Negotiation Period.6
DOPA Process
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The Mayor may either purchase a property or assign the District’s right
to purchase to a developer that meets criteria set by DHCD.
DHCD released an Request for Qualifications
(RFQ) to create a list of Pre-Qualified
Developers on Nov. 16, 2018
Once properties are selected, a
separate Request for Proposals (RFP) will be released to the Pre-Qualified
Developers
Developers will be assigned rights to properties based on their ability to
acquire the property and their
commitment to preserve
affordable housing
RFQ Submission
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• Cover Letter
• Narrative Proposal
• Certifications
• Applicant Qualifications Forms
• Applicant Financial Statements
• Additional Information
Selection of Pre-Qualified Developers
to Preserve Affordability
Developers will be selected based on their demonstrated capacity and
expertise in acquiring, renovating, maintaining and owning affordable
multi-family rental housing, which may be evidenced by:
• List of prior affordable and market-rate housing;
• Qualifications and capacity of proposed personnel and contractors;
• List of lenders and equity sources used in prior projects;
• Description of affordability covenants applicable to prior projects;
• An affirmative statement that developer has never been in financial
default;
• Description of developer's typical marketing and property
management plan; and
• Registration and license to do business in the District of Columbia.
This information can be found in the RFQ released on November 16,
2018 on the DHCD website.
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RFQ Submission
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DOPA Assignment of Rights in 7 Steps
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1. DOPA Notification Form Received
2. Property Eligibility Determined
3. Statement of Interest Sent
4. RFP Sent to Pre-Qualified Developers
5. Wait for Tenants to Decide on their TOPA rights
6. Property Awarded through Assignment of Rights and Affordability Covenant
7. Compliance and Follow Up
Tivoli Gardens, a TOPA
project in Ward 5, is an
example of the type of
project that also can
benefit from DOPA.
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• DOPA Notification Form is
expected from property owners
selling a building with 5+ rental
units.
• Property owners must certify on
the DOPA Notification Form if they
qualify or not for DOPA.
• Additional documentation may be
requested to determine the
Mayor’s interest in the property.
Step 1. DOPA Notification Form Received
DOPA Notification Form
General Criteria for the Selection of Properties for Preservation of
Affordable Rental Units*
• Affordable housing covenants that will expire within the next five years;
• Location in neighborhoods with above average rents;
• Smaller buildings with 5-20 units being sold under $2 million;
• Presence of elderly and/or tenants with disabilities;
• Significant number of family-sized units and amenities;
• High vacancy rates;
• Significant code violations;
• High municipal debt;
• Received a notice of default or is in significant risk of foreclosure; and
• Historical or culturally significant properties in the District of Columbia.
*Published on November 16, 2018 in the DC Register.
Step 2. Property Eligibility Determined
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DHCD will send a statement of interest to property
owners and a copy to tenants within 30 days of
receiving a DOPA notification.
Additional information may be requested at this time to
conduct or finalize due diligence on the property.
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Step 3. Statement of Interest Sent
Pre-qualified developers will have to demonstrate the ability to
acquire the building by submitting the following documentation:
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Affordability Plan, Development Budget &
Operating Proforma
Letters of Interest from Financial Institutions
Narrative Responses
Step 4. RFP Sent to Pre-Qualified Developers
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An affordability
plan for the
building will be
submitted for
each property
utilizing Form
D-202
Step 4. RFP Sent to Pre-Qualified Developers
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The Monthly Rent charged to an Existing Household shall not exceed the
lesser of:
• The Existing Household’s current Monthly Rent; or
• 30% of the Existing Household’s monthly income .
In the case that the following information cannot be obtained:
• Current income: the tenant will pay their current monthly rent; or
• Monthly rent: the tenant will pay based on the affordability plan.
In each case, the Monthly Rent shall be subject to Allowable Annual
Increases.
Step 4. RFP Sent to Pre-Qualified Developers
Affordability Plan: Monthly Rent Allocations
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Income restrictions may be imposed upon the Rent Restricted Units
pursuant to the affordability plan and the covenants recorded on the
property.
If the Monthly Rent was equal to or less than 60% or 30% of MFI, then
they shall remain at those levels upon turnover.
Vacant units shall be filled and maintained as close as practicable to
the following distribution at the time of initial income certification:
• 1/3 shall be occupied by households at 30% MFI Level;
• 1/3 shall be occupied by households at 60% MFI Level; and
• 1/3 shall be occupied by households at 80% MFI Level.
Step 4. RFP Sent to Pre-Qualified Developers
Affordability Plan: Unit Turnover
RFP Narrative Questions
• Changes to information previously submitted in RFQ;
• Proposed approach to implementing DOPA’s goals;
• Approach to remedying any issues present at the property;
• Plans for the housing accommodation, including any building
construction or modification;
• Any specific populations intended to be served; and
• Development timeline.
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Step 4. RFP Sent to Pre-Qualified Developers
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Step 4. RFP Sent to Pre-Qualified Developers
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Days DOPA Selection of Developers
30-35 RFP will be sent to pre-qualified developers
40-75 Proposals submitted
75-95 Applications reviewed
95-120 Wait for TOPA to run its course (may move faster if tenants
have not organized and/or choose to not assign their
rights)
120 Award the project to selected developer through
assignment of DOPA rights
121-165 Negotiation
165-225 Settlement
Step 5. Wait on Tenants to Decide on Their TOPA Rights
• District will assign its right to purchase.
• Affordability of rents is maintained as long as the property
remains a housing accommodation.
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Step 6. Property Awarded through Assignmentof Rights and Affordability Covenant
Tenants at 5741
Colorado Ave. NW
in Ward 4 used
TOPA and had a
ribbon cutting with
government and
nonprofit reps at
rehabbed building.
Similar ceremonies
for DOPA projects
are in the future.
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Developers shall file a combined property report and affordability plan
for the Housing Accommodation with the Agency within 120 days after
settlement and annually by December 31 of each year. The combined
property report and affordability plan shall include, but not be limited to,
the following:
• The number of units, number of bedrooms, and square footage
• The names of each Household member
• The Monthly Rent
• The income and MFI Level of each Household
Step 7. Compliance
Affordability PlanAffordability Plan
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• Proof of rental registration, a certificate of occupancy, and a basic
business license;
• Proof of insurance;
• A description of any income restrictions to be imposed on new
tenants;
• The proposed methodology to increase the number of Rent
Restricted Units;
• A list of vacant Rental Units;
• A calculation of the percent of income each Household occupying
a Rental Unit in the Housing Accommodation spends on Monthly
Rent; and
• A notation indicating which Rental Units qualified as Affordable
Rental Units under the Act.
Step 7. Compliance
Property Management Plan
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Common Questions
Connection Between DOPA & TOPA
• How will DHCD know what happens with TOPA?
• Do tenants get to select or review to whom DHCD will assign its DOPA
rights?
• How will DHCD ensure that DOPA does not become an incentive for
tenants who do not want to decide on their TOPA rights?
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Common Questions
• Can developers work with TOPA and DOPA?
• How often will interested developers be added to the “Pre-Qualified
Developer” list?
• What do they need to do to recertify?
• If the applicant has not developed and/or owned a minimum of three
properties within the District, does that disqualify the applicant from
becoming a pre-qualified DOPA developer?
Pre-Qualified Developers
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Common Questions
FINANCING FOR DOPA PROJECTS
• Does the District benefit monetarily from DOPA?
• Is the District posting security deposits?
• Are there below-market financing incentives available for developers to use
with DOPA?
• Will developers receive bonus points in the DHCD’s Housing Production
Trust Fund Consolidated Request for Proposals (RFP) for participating in
DOPA?
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Roots to Roofs DC
http://www.rootstoroofsdc.com/
RFQ link
https://dhcd.dc.gov/page/reques
t-qualifications-pre-qualified-
potential-assignees-under-dopa
DOPA Notification Form
https://dhcd.dc.gov/page/dopa-
notification-form-housing-
accommodations-five-5-or-
more-rental-units
Resources
Brooklyn Place Apartments in Ward 5
is a TOPA project, and another
example of projects that could fall
under DOPA.
QUESTIONS?
Ana van Balen
DHCD Housing Preservation Officer
202-442-8392
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